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Risks of exceptional customer service

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Example taken from the book:

Kutter, P., & Keller,K.L. (2012) Marketing (Pg. 147-148) Management (14th edition). Upper Saddle River, NJ: Prenice Hall.

Nordstrom had already set the standard by taking back a set of clearly worn and dangerously unsafe tires and paying the customers back. The question would have to do with what would be the risks in doing this and who would really be Nordstrom's main competitors?

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The solution discusses risks of Nordstorm's exceptional customer service. Examples are provided.

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The risk in Nordstrom replacing tires is that such a policy would motivate many customers to take undue advantage of this policy and engage in fraudulent and manipulative practices to gain personal benefits at the expense of the company. Nordstrom's main competitors are other retail firms that sell similar products.

Nordstrom can continue to provide exception customer service by offering ...

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